Download Internet Auction

Internet Auction
Presented by Ying Wang
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Introduction of Internet Auction
Different Internet Auction Methods
Internet Auction Software Design
Some Internet Auction Issues
Internet Auction Sites
References
What is Internet Auction
The Entities in Internet Auction
Use Finite State Machine to model Business Negotiations
Auction Methods
 Open-cry auction (English auction)
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The buyers gather at a physical/virtual location.
Each buyer can hear the bid of a rival buyer.
A time limitation on overbidding.
Some variations.
• anonymity. (e.g. the identity of the bidder)
• Rules to end the auction.
• the price the winners pay.
– Yankee auction: pay the price they bid.
– Non discriminative auction: pay the price paid by the winning bidder
with lowest bid.
– Vickrey auction: pay the price bid by the second highest bidder.
Auction Methods (continue)
 Sealed bid auction
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The buyers are required to submit their bids by a specified deadline.
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The auctioneer keeps the bid information secret until the deadline.
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When it is closed, the bids are evaluated and winners are declared.
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The auction can be single / multiple round.
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Single round sealed bid auctions lack the competitive atmosphere.
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Multiple round sealed bid auctions rectify this situation.
Auction Methods (continue)
 Dutch auction
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Suitable for perishable items. (e.g. vegetable, airplane seats)
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The auctioneer starts with a very high asking price.
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Then gradually decreases his asking until the buyers emerge with
bids to purchase at the price.
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The auctioneer can continue lowering his bid to maintain a stream
of buyers while the inventory lasts.
Auction Methods (continue)
Revenue-Equivalence theorem
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Though counterintuitive, Vickrey, Dutch, open cry and sealed bid
auctions yield the same revenue for the seller when one item is
being sold, the bidders are risk neutral, their valuations are
independent draws from the same probability distribution, and
each bidder knows only his valuation and the distribution function
from which the other bidders draw their valuation.
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The outcome of various type of auctions also affected by
psychological such as preference reversal and misjudged revision
of valuation and winning probability during an auction.
Auction process
 Initial buyer and seller registration
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Authentication of trading parties
Exchange of cryptography keys
Creation the trader’s profiles
 Setting up a particular auction event
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Description the item being sold
Setting rules for the auction (auction type, parameter negotiated, time)
 Scheduling and advertising
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attracting and notify the potential buyers.
 Bidding
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handle the collection of bids from buyers
 Evaluation of bids and closing the auction
 Trade settlement
Internet auction software design
Internet auction software design (continue)
Internet auction software design (continue)
Some IA issues
 Response time
 Browser-server communication
 Peak loading
 Real time protocols
 Scalability
 Independent processes
 Lot creation
 Security
Auction web sites
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http://www.ebay.com
http://www.onsale.com
http://www.haggle.com
http://www.sportingauction.com
http://www.uauction.com
http://www.internetliquidators.com
http://www.auctioncentral.com
http://www.bidnask.com
http://www.firstauction.com
http://www.usn.net/auc
http://www.bonk.com/auctions
http://www.ky.gov/kybids.htm
http://www.worldsource-usa.com
(person-to-person auction)
(using yankee auction)
(person-to-person auction)
(using English auction)
(using English auction)
(using Dutch auction)
(using English auction)
(Java based, can access multiple retailer)
Www.egghead.com (www.onsale.com)
Auction methods used by onsale/egghead
Client side auction agent used by onsale/egghead
What I bought on onsale
 TPI w/Cyrix MII 333, 64MB,
 6GB Hard Disk, 36 X CD
 56K (V.90) 17” Monitor
 Problem:
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Time: Nov. 17, 1998
Cost: $699
Shipping fee: $99
Total: $798
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Monitor did not work, took 1
month to repair by TPI
Unpredictable system halt
under 95/NT, ok under linux
keyboard did not work after
one year